Q4 2026 Wolfspeed Inc Earnings Call Transcript
Key Points
- Wolfspeed Inc (WOLF) delivered Q4 revenue of $150 million, at the midpoint of guidance, demonstrating consistent execution.
- AI data center revenue more than doubled in fiscal 2026 and grew approximately 20% sequentially, driven by new design wins with leading companies like LITEON.
- The company announced its Gen 5 MOSFET technology, which offers the industry's best specific on-state resistance, providing a significant performance leap.
- Wolfspeed Inc (WOLF) secured new automotive business, including a first-time award from a European Tier 1 supplier for a large German OEM's onboard charger.
- The company strengthened its balance sheet with $1.1 billion in cash and reduced debt through voluntary conversions, while also making progress on its 300-millimeter roadmap by shipping first engineering samples.
- Gross margin improved by 70 basis points sequentially, driven by favorable product mix and higher sales in AI data centers and RF materials.
- Wolfspeed Inc (WOLF) continues to face significant profitability challenges, with a non-GAAP gross margin of -19.9% and negative adjusted EBITDA of -$62 million.
- Factory underutilization remains a primary drag on gross margins, and the company expects gross margins to remain negative in the next quarter.
- Automotive revenue remained soft, with the company noting that demand is hard to predict due to customer product mix changes.
- Operating cash flow was negative $54 million in Q4, highlighting ongoing cash burn despite inventory reductions.
- The company's first lien debt carries a high interest rate of around 16%, and refinancing it is a key priority to reduce interest expenses.
- Materials revenue is in a transition period as customers shift from 150-millimeter to 200-millimeter substrates, creating uncertainty in near-term demand.
Hello, everyone. Thank you for joining us, and welcome to the Wolfspeed Inc. Fourth quarter fiscal year 2026 earnings call. On the call today from the Wolfspeed team is Chief Executive Officer, Robert Feurle; Chief Financial Officer, Gregor Van Issum; and Dan Whalen, Vice President, Investor Relations. After today's prepared remarks, we will host a question-and-answer session.
I will now hand the conference over to Dan Whalen. Dan, please go ahead.
Thank you, operator, and good afternoon, everyone. Welcome to Wolfspeed's fourth quarter fiscal 2026 conference call. We encourage you to reference the slides that were published on our IR website today. Please note that we will be presenting non-GAAP financial results during today's call, which we believe provide useful information to our investors. Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies.
Non-GAAP information should be considered as a
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